Consider a call option. if, in a two-state model, a stock can take a price of $136 or $102, what would be the hedge ratio for each of the following exercise prices: $136, $130, $120, $102? (leave no cells blank - be certain to enter "0" wherever required. round your answers to 2 decimal places.) x hedge ratio $ 136 $ 130 $ 120 $ 102
b. what do you conclude about the hedge ratio as the option becomes progressively more in the money? increases to a maximum of 1.0 decreases to a minimum of 0 rev: 01_15_2019_qc_cs-153507, 03_09_2019_qc_cs-162326
Answers: 1
Business, 21.06.2019 16:20
Kinkead inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be â$10 million, but its fcf at t = 2 will be $20 million. after year 2, fcf is expected to grow at a constant rate of 4% forever. if the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?
Answers: 2
Business, 21.06.2019 23:30
Martha is the head of the accounts department in a small manufacturing company. the company follows the accrual-basis method of accounting. it recently purchased raw materials worth $5,000 from its vendors. however, the company paid only $3,000 to its vendors. it plans to pay the remaining amount after three months. considering this information, which entry should martha record in the companyâs accounts? a. $5,000 as accounts receivable b. $3,000 as accounts payable c. $2,000 as accounts payable d. $2,000 as accounts receivable
Answers: 3
Business, 22.06.2019 03:30
Diversified semiconductors sells perishable electronic components. some must be shipped and stored in reusable protective containers. customers pay a deposit for each container received. the deposit is equal to the containerâs cost. they receive a refund when the container is returned. during 2018, deposits collected on containers shipped were $856,000. deposits are forfeited if containers are not returned within 18 months. containers held by customers at january 1, 2018, represented deposits of $587,000. in 2018, $811,000 was refunded and deposits forfeited were $41,000. required: 1. prepare the appropriate journal entries for the deposits received and returned during 2018. 2. determine the liability for refundable deposits to be reported on the december 31, 2018, balance sheet.
Answers: 1
Business, 22.06.2019 13:10
A4-year project has an annual operating cash flow of $59,000. at the beginning of the project, $5,000 in net working capital was required, which will be recovered at the end of the project. the firm also spent $23,900 on equipment to start the project. this equipment will have a book value of $5,260 at the end of the project, but can be sold for $6,120. the tax rate is 35 percent. what is the year 4 cash flow?
Answers: 2
Consider a call option. if, in a two-state model, a stock can take a price of $136 or $102, what wou...
World Languages, 21.01.2020 15:31
Mathematics, 21.01.2020 15:31
Social Studies, 21.01.2020 15:31
History, 21.01.2020 15:31
Mathematics, 21.01.2020 15:31
Mathematics, 21.01.2020 15:31
Health, 21.01.2020 15:31
Physics, 21.01.2020 15:31
Chemistry, 21.01.2020 15:31
Mathematics, 21.01.2020 15:31